Ethereum Plunges 8% as Institutional Selling and Inflation Fears Drive Price Below $2,000

Ethereum's price experienced a significant decline, falling below the $2,000 mark on March 9. This drop mirrored the broader market trend and was exacerbated by institutional investors offloading their ETH holdings, increasing the downside risks for the cryptocurrency. The decline was driven by a combination of factors, including rising inflation concerns and the latest US Non-Farm Payroll (NFP) report, which highlighted increasing unemployment and inflation pressures.

The NFP report dominated investor outlook, leading to a bearish sentiment across the market. Ethereum's price tumbled to as low as $1,998 on Binance, marking an 8% daily decline. This drop was more pronounced than Bitcoin's 4% losses within the same timeframe, indicating stronger bearish momentum within ETH spot markets. The selling pressure was further exacerbated by mounting fears of further Federal Reserve tightening in response to rising inflation metrics. Investors are now eyeing the next Consumer Price Index (CPI) report, which could influence ETH's price trajectory.

Institutional investors are reallocating capital away from crypto markets toward fixed-income securities, driving bond yields higher across global markets. This shift in investor sentiment has translated into substantial outflows from Ethereum ETFs. According to on-chain analytics, Ethereum ETFs recorded $23 million in outflows on Friday, the same day the US NFP report was released. Among the largest liquidations, BlackRock’s iShares Ethereum ETF saw an $11 million capital flight, the highest single-day outflow among Ethereum-focused funds. The rapid outflows in Ethereum ETFs suggest that institutional investors are repositioning their portfolios in anticipation of further downside in crypto markets. If Ethereum ETF outflows continue into the coming week, ETH price could struggle to mount a sustained recovery.

Ethereum's price forecast signals have taken a decisive bearish turn, with ETH plunging 8.3% on March 9 to test support near $2,000. The daily chart reveals a concerning technical setup, as ETH struggles below key moving averages, with a confirmed Death Cross between short-term EMAs signaling prolonged downside risks. If Ethereum closes below the critical $2,000 level, selling pressure could accelerate, targeting the next major support at $1,850, where historical demand has previously stabilized declines. The